Re: Is Personal Accident cover in Motor Insurance adequate? HC thinks otherwise Quote:
Originally Posted by blackwasp I think this will unnecessarily increase the premium. Should be left as a choice to the owner. Further, a person covered by his company's group insurance will unnecessarily be forced to pay the extra premium.
Have this doubt - most of the policies are under the name of the vehicle owner. In case he gives the car to his friend and the guy crashes the car, can the next of kin of the friend sue the owner (or demand compensation) if he had only the basic coverage? On one side, it maybe possible that the owner has other accident insurance and doesn't need one from his motor vehicle policy, but the friend may not have any additional insurance. |
The present PA cover being provided by the Insurance co is at a very nominal premium, peanuts compared to the PA cover being available if taken independently from Insurance co. So I don't think there would be a substantial increase in the premium and since this would be mandatory along with the TPL, compensation in case of the death of the owner/driver would be at par with the present rates. Of course people can debate that a term life plan would be beneficial in case of accidental deaths but looking at the Insurance penetration in the Indian market, increasing PA cover would be really beneficial.
Regarding your other query, if the Insured has opted for PA cover for any named person other than paid driver/cleaner, then a claim can be made. I will need to check the PA cover available. But above can be done only if the owner confirms the person driving the car in his absence is a paid driver or employee and that the claim will be subject to owner's approval.
Why would the kin of the friend in your reference sue the owner for insufficient PA cover? Isn't the friend responsible for his acts. Yes the owner would also be responsible for giving the friend his car but that would be an act of trust. Quote:
Originally Posted by RaguHolla If missing Paid-Driver coverage or PA Cover for unnamed passenger and kin of affected goes to Court for seeking compensation, owner can held responsible. Most likely compensation will be recovered from owner (depending on court finding fault with owner). |
Owner cannot be held responsible for accident caused by any unnamed passenger or Named person other than paid driver/cleaner. Compensation will not be paid by the owner but by the Insurance co provided the necessary TPL premiums are taken and paid. |